You Don’t Want to Get to Step 7 of the IRS Tax Form Processing Proceedure

October 27, 2011 by  Filed under: Taxes 

In the steps outlined below, you’ll get a good perspective on IRS procedure.

Step 1. Mail enters the IRS mail room and gets generally sorted by mail room employees.

Step 2. Mail gets opened by other employees who then sort the forms onto a cart and then run the cart up an aisle of specially made desks which have an assortment of cubby holes- open in the back. The employee quickly shoves the different taxpayer forms into the back of the all desks’ cubby holes so that the people seated at the desks can package them for data entry.

Step 3. Data Entry: More trained employees sit at an IRS terminal entering in the exact tax form, line by line.

Step 4.The IRS computer decides quickly whether or not it will accept the tax form. If so, the form is processed by the computer to go out the door and a check is printed for the taxpayer (best case scenario).

Step 5. The IRS computer decides the tax form contains errors. The form is sent to the “Error and Corrections” department where more employees are in front of IRS terminals trying to determine “what’s wrong with this tax form?”

Step 6. The tax form’s problem may be simply a misplaced number on a wrong line. The trained operator of the terminal quickly corrects the error, the IRS computer likes what it sees and the tax form is sent to outbound processing and a check is THEN printed and sent to the taxpayer (again BEST CASE Scenario, obviously).

Step 6a. The error is in the taxpayer’s math. Could very well be that a “Schedule C” or some other supporting form is missing. A letter is then generated by the computer requesting the missing schedule, the taxpayer complies within a certain deadline, the missing form’s data is entered, the computer accepts the complete 1040 and a check is then generated and sent to the happy taxpayer.

Step 6b. The bottom line on the 1040 tax form adds up in the NEGATIVE for the taxpayer. The tax form is then accepted by the IRS computer and no further supporting documents are allowed.

Step 7. The tax form is sent to the IRS department of accountants and legal staff. It is reviewed for accuracy and action is taken to notify the taxpayer of the deficit.

Step 8. After a deadline is given to the taxpayer the IRS takes legal action and the taxpayer must then pay with something, like cash, property, garnishment or jail time (worst case scenario).

Step 9. Break time at the IRS, everyone gets 20 minutes.

Step 10. It’s back to work.

In Step 6b above the error is due because the taxpayer simply did not know that the proper assortment of forms was needed to make the IRS computer happy. The computer at the IRS is the one you must keep happy. The folks on the inside are more interested in Step 9 (break time) then the individual taxpayer, YOU.

Taxation laws present many opportunities for a taxpayer to find plenty of ways to correctly notate income figures so that the bottom line is more palatable to the taxpayer. With the multitude of forms interacting correctly, the IRS computer should have no problem in accepting what you need it to accept. Don’t be frightened by the people in the IRS, befriend the IRS computer and you won’t have tax debt.

Union Consulting, saves hundreds of millions of dollars in tax revenue each year, for troubled taxpayers and corporations. Often times misfiled 1040 tax forms come from CPA’s who’ve been hired to file the taxes when they themselves don’t have the proper knowledge how to “befriend” the IRS Computer.

Moral: The IRS is like Robin Hood. It robs from the ignorant and gives to the well informed.

RockinJay gathers information for a variety of helpful sites. As a former part-time IRS employee he writes to give perspective on properly filing tax forms to eliminate tax debt. Union Consulting Louisville Co are the ones you call to relieve your stress from the IRS.

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